Tax Lawyers in Virginia

Virginia imposes a progressive income tax ranging from 2% to 5.75%, with tax brackets based on taxable income. Corporate income tax is set at 6%. The state sales tax is 5.3%, with an additional 1% local tax, reaching up to 7% in some regions. The Virginia department of taxation handles the collection of state taxes, administers tax laws and ensures compliance.

Property taxes are determined at the local level, varying by jurisdiction. Virginia offers tax exemptions, including deductions for dependents, certain retirement income, and contributions to ABLEnow accounts. While there is no state estate tax, individuals and businesses must comply with various tax obligations. Despite these taxes, Virginia provides deductions and credits that may reduce tax burdens for eligible taxpayers.

Virginia has a progressive state income tax, with rates ranging from 2% to 5.75% depending on income. The highest bracket applies to taxable income over $17,000. The state offers a standard deduction of $8,000 for single filers and $16,000 for married couples filing jointly. Personal and dependent exemptions allow deductions of $930 per individual. For a full breakdown of Virginia income tax rates, kindly click here.

While Virginia does not impose local income taxes, residents can claim deductions for education expenses, medical insurance premiums, energy-efficient appliances, and organ donation costs. Certain tax credits, such as the Earned Income Tax Credit (EITC), are also available.

Unlike some states, Virginia does not tax Social Security benefits, but other retirement income may be taxable. Capital gains in Virginia are taxed as regular income, but taxpayers may deduct any income that’s taxed as a long-term capital gain for federal income tax purposes.

Here are the types of income that are not taxed in Virginia:

1. Military Benefits: Certain military retirement benefits, including those from the Thrift Savings Plan (TSP), CSRS, or FERS, can be subtracted from taxable income under specific conditions.
2. First-Time Home Buyer Savings Accounts: Earnings in designated homebuyer savings accounts, if used for a qualified home purchase, are excluded from Virginia state income tax.
3. Social security Benefits: Virginia doesn’t tax Social Security benefits, and if any portion of your Social Security benefits is taxed at the federal level, you can subtract that amount on your Virginia tax return.
4. Municipal Bond Interest: Interest from Virginia municipal bonds is generally exempt from state taxes.
5. Virginia College Savings Plan Earnings: Earnings from a Virginia 529 plan are tax-free if used for qualified educational expenses.
6. Gains from the Sale of Your Home: If you qualify for the federal exclusion on the sale of your primary residence ($250,000 for single filers, $500,000 for married filers), Virginia also does not tax this income.
7. Some Disability Payments: Workers’ compensation and some other disability payments may be tax-exempt.

Yes! Virginia offers various tax exemptions for individuals and businesses. Here are some key exemptions:

• Income Tax: Social Security benefits, certain military pay, veterans’ benefits, and First-Time Home Buyer Savings Account earnings are tax-free. Seniors (65+) can deduct up to $12,000, and dependents get a $930 exemption.
• Sales Tax: Exemptions apply to groceries (1% tax), prescription drugs, medical devices, Agricultural supplies and equipment, and certain nonprofit purchases.
• Property Tax: 100% exemption for disabled veterans on their primary residence. Seniors and disabled individuals may qualify for local property tax relief.
• Vehicle Tax: Personal property tax relief on the first $20,000 of a car’s value.

These exemptions help reduce tax burdens for Virginia residents.

Virginia tax lawyer fees vary based on case type, whether it’s an IRS audit, estate tax planning, or business tax resolution. Costs may be hourly or a flat fee.

At Taxlawyer.com, we assist Virginians in finding licensed Virginia tax attorneys who provide tailored tax solutions without excessive legal fees.

If you’re facing an IRS dispute, business tax issue, or estate tax concern in Virginia, follow these steps to find the right tax attorney:

• Define your tax issue – IRS penalties, tax fraud allegations, appeals, or small business taxation.
• Verify the lawyer’s expertise – Ensure they have experience with Virginia tax laws and IRS representation.
•  Schedule a consultation – Review your case strategy before making a hiring decision.
• Discuss legal fees upfront – Avoid unexpected costs by clarifying billing terms.

At TaxLawyer.com, we help Virginians find trusted tax attorneys who specialize in complex tax matters.

Virginia’s tax laws cover income, sales, property, and business taxes. Here’s a breakdown:

1. Progressive Income Tax: Virginia has a progressive state income tax system with four brackets, ranging from 2% to 5.75%. The top rate applies to income over $17,000.
2. Retirement Income Exemptions: Social Security benefits are fully exempt. Seniors 65+ can deduct up to $12,000 from other retirement income, subject to income limitations.
3. Sales Tax: The state sales tax is 5.3%, with local surtaxes bringing the total to 7%. Groceries and essential personal hygiene products are taxed at a reduced 1% rate. Prescription drugs and medical devices are exempt.
4. Investment Income: Capital gains in Virginia are taxed as regular income, but taxpayers may deduct any income that’s taxed as a long-term capital gain for federal income tax purposes.
5. Property Tax: Virginia does not have a state property tax; rates are set by localities. Its effective property tax rate on owner-occupied housing value is 0.72%. Exemptions exist for seniors, disabled individuals, and 100% disabled veterans.
6. Corporate Tax: The corporate income tax rate is 6%, which is lower than many neighboring states.
7. Estate Tax: Virginia does not impose an estate or inheritance tax.
8. Fuel & Tobacco Tax: The state gasoline tax is 39.10 cents per gallon, while the cigarette excise tax is $0.60 per pack, among the lowest in the region.